Which of the following is NOT an assumption of the EOQ model? a. It is possible to receive a purchase discount if the order quantity is sufficiently large. b. There is a fixed cost to submit each order that is independent of the amount ordered. c. Demand occurs at a constant rate per unit of time. d. There is a cost to hold each unit of inventory per unit of time.

Question

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Answer 1

Textbook Question

Chapter 12, Problem 1CQ

Which of the following is NOT an assumption of the EOQ model?

a. It is possible to receive a purchase discount if the order quantity is sufficiently large.
b. There is a fixed cost to submit each order that is independent of the amount ordered.
c. Demand occurs at a constant rate per unit of time.
d. There is a cost to hold each unit of inventory per unit of time.

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

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Students have asked these similar questions

[item no.13] Which of the following is true about the Production Run Model? a. Total cost is minimized when annual ordering cost is greater than the carrying cost. b. The maximu inventory level is equal to the number of pieces per production run. c. The maximum inventory level is equal to the total produced during the production run minus the total used during the production run. d. It requires the instantaneous inventory receipt assumption.

. A newsvendor faces normally distributed demand and the critical ratio is .8. If theprofit-maximizing quantity is ordered, which of the following statements is true? a. Expected sales are less than expected demand.b. Expected sales are greater than expected demand.c. Expected sales are exactly equal to expected demand.d. Expected sales could be less than, equal to, or greater than expected demand.

Suppose the newsvendor model is used to manage inventory. Which of the followingcan happen when the order quantity is increased by one unit? a. Expected sales increases by more than one unit.b. Expected leftover inventory increases by more than one unit.c. Expected sales decrease by less than one unit.d. Expected leftover inventory increases by less than one unit.

Answer 2

Textbook Question

Chapter 12, Problem 1CQ

Which of the following is NOT an assumption of the EOQ model?

a. It is possible to receive a purchase discount if the order quantity is sufficiently large.
b. There is a fixed cost to submit each order that is independent of the amount ordered.
c. Demand occurs at a constant rate per unit of time.
d. There is a cost to hold each unit of inventory per unit of time.

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

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Answer 3

Textbook Question

Chapter 12, Problem 1CQ

Which of the following is NOT an assumption of the EOQ model?

a. It is possible to receive a purchase discount if the order quantity is sufficiently large.
b. There is a fixed cost to submit each order that is independent of the amount ordered.
c. Demand occurs at a constant rate per unit of time.
d. There is a cost to hold each unit of inventory per unit of time.

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

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Answer 4

Textbook Question

Chapter 12, Problem 1CQ

Which of the following is NOT an assumption of the EOQ model?

a. It is possible to receive a purchase discount if the order quantity is sufficiently large.
b. There is a fixed cost to submit each order that is independent of the amount ordered.
c. Demand occurs at a constant rate per unit of time.
d. There is a cost to hold each unit of inventory per unit of time.

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

Answer 8

Expert Solution & Answer

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Summary Introduction

To identify: The feature that is not an assumption of the EOQ model.

Answer 12

Explanation of Solution

Correct option: (a)

Correct answer:

It is possible to receive a purchase discount if the order quantity is sufficiently large.

Justification:

Economic order quantity (EOQ) is the optimum purchase quantity of an item at a single point during a period to minimum the annual cost for ordering and carrying the items in inventory. It is also known as the optimum lot size. The above assumption is not true with regards to the EOQ model because, the EOQ is always calculated under the assumption that there are no purchase quantity discounts unless otherwise they are explicitly mentioned by the seller.

Answer 13

Ch. 12 - Which of the following is NOT an assumption of the...Ch. 12 - Prob. 2CQ Ch. 12 - Prob. 3CQ Ch. 12 - If the order quantity doubles but the flow rate...Ch. 12 - Prob. 5CQ Ch. 12 - Prob. 6CQ Ch. 12 - Prob. 7CQ Ch. 12 - Prob. 8CQ Ch. 12 - Prob. 9CQ Ch. 12 - Prob. 1PA

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